The gaming industry wrapped up 2024 with a reality check. GamesIndustry.biz released their comprehensive Year in Numbers infographic, revealing an industry stuck in neutral despite some massive individual success stories. The global games market hit $184.3 billion in revenue, growing just 0.2% compared to 2023. Behind those aggregate numbers lies a tale of two industries – mobile crushing it while consoles and PC struggle to maintain ground.
But the real story of 2024 isn’t about revenue. It’s about survival. Over 15,000 game developers lost their jobs this year, surpassing the already brutal 10,000+ layoffs from 2023. Major studios closed permanently. Ambitious projects were cancelled mid-development. The industry that exploded during the pandemic now faces a harsh correction as growth stalls and costs spiral out of control.
The Revenue Breakdown – Mobile Dominates Everything
Mobile gaming generated $92.5 billion in 2024, representing exactly half of the entire global games market. That’s a 2.8% year-over-year increase, making mobile the only platform segment showing genuine growth. Console games fell 4% to $50.3 billion, while PC games declined 0.2% to $41.5 billion.
These numbers reveal a fundamental truth about modern gaming that traditional gamers often prefer to ignore – mobile is the industry. It’s bigger than console and PC combined. The games hardcore enthusiasts dismiss as not real gaming generate more revenue than everything else put together. Free-to-play mobile titles packed with microtransactions fund the entire ecosystem.
The dominance of digital sales continued its relentless march forward. Digital games accounted for 95.4% of total revenue or $175.8 billion. On PC, digital represents 99% of sales. Even consoles, where physical media stubbornly hangs on, saw digital climb to 84% of revenue. Only $8.5 billion came from physical game sales globally, a market segment rapidly approaching irrelevance outside niche collector audiences.
Best Selling Games – Sports and Sequels Win
EA Sports College Football 25 emerged as the year’s biggest surprise, becoming the best-selling game in the United States for 2024. The revival of the NCAA football franchise after an 11-year absence resonated powerfully, overtaking expected heavy hitters and ultimately becoming the best-selling sports game in U.S. history. It surpassed NBA 2K21’s previous record and landed in the top 50 best-selling tracked video games of all time.
The full top 10 best-selling games in the U.S. from January to November 2024 showcases the industry’s reliance on established franchises. EA Sports College Football 25 led the pack, followed by Helldivers 2, Call of Duty: Black Ops 6, Dragon Ball: Sparking! Zero, and Dragon’s Dogma II. The annual sports titles – Madden NFL 25, NBA 2K25, EA Sports FC 25, MLB The Show 24, and EA Sports UFC 5 – filled out most of the remaining slots.
Helldivers 2 proved to be 2024’s breakout phenomenon. The cooperative shooter from Arrowhead Game Studios sold over 12 million copies in its first 12 weeks, becoming PlayStation’s fastest-selling game ever. By November, estimates placed total sales above 15 million copies. Over half of those sales came from PC rather than PlayStation 5, demonstrating Sony’s expanding multiplatform strategy.
Dragon Ball: Sparking! Zero launched in October with explosive momentum, selling 3 million copies within 24 hours. By March 2025, the fighting game crossed 5.4 million units sold, making it the fastest-selling Dragon Ball game in franchise history. Bandai Namco revealed that approximately 90% of sales came from Europe and North America rather than Japan.
The Layoff Crisis – 15,000 Jobs Lost
The gaming industry laid off at least 15,048 people in 2024 according to Game Industry Layoffs tracking portal. That number almost certainly underestimates the true total, as many smaller studios don’t publicly announce cuts. It represents a 50% increase over 2023’s already devastating 10,000+ layoffs.
January 2024 was the worst month in gaming industry history for job losses. Over 6,000 developers were cut across 33 separate rounds of layoffs. The carnage started immediately after the holidays as publishers reassessed budgets and found their balance sheets wanting. February added another 2,027 layoffs, making it the second-worst month of the year.
Microsoft topped the list with 2,800 gaming division layoffs across multiple rounds. The cuts came after Microsoft’s $69 billion acquisition of Activision Blizzard, a deal that was supposed to secure Xbox’s future but instead triggered massive restructuring. In January alone, Microsoft announced 1,900 layoffs representing 8.6% of its gaming workforce. In May, the company shocked the industry by closing four Bethesda studios including Tango Gameworks, developer of the critically acclaimed Hi-Fi Rush.
Unity cut 1,800 employees in January, representing nearly 25% of its entire workforce. The engine developer underwent continued business restructuring following controversial runtime fee announcements that alienated much of the development community. Sony laid off 1,339 people across multiple studios including Insomniac Games, Naughty Dog, and Guerrilla Games, while also permanently closing PlayStation London Studio. Bungie, Firewalk Studios, and Neon Koi all suffered additional cuts throughout the year under Sony’s umbrella.
Tencent’s various worldwide gaming subsidiaries combined for 862 layoffs. Riot Games alone cut 562 employees across two rounds. Electronic Arts, Embracer Group, Take-Two, and nearly every major publisher implemented workforce reductions as cost-cutting became the industry’s dominant strategy.
Studio Closures – When Layoffs Aren’t Enough
Beyond layoffs, 2024 saw numerous studios close permanently. PlayStation Studios’ London Studio shuttered in February after 20 years of operation. Deviation Games, the studio founded by former Call of Duty developers and working on a PlayStation exclusive, closed in March without releasing anything.
Microsoft’s closure of Tango Gameworks, Arkane Austin, Alpha Dog Games, and the merger of Roundhouse Studios in May represented one of 2024’s most controversial decisions. Tango had just delivered Hi-Fi Rush, a critically acclaimed hit that seemingly embodied everything Xbox claimed to want – creative, innovative, successful mid-budget games. The studio’s closure signaled that even critical and commercial success couldn’t guarantee survival in the current climate.
NetEase systematically dismantled its Western development ambitions, closing or defunding six studios including Fantastic Pixel Castle led by former World of Warcraft designer Greg Street, Jackalyptic Games founded by City of Heroes creator Jack Emmert, and studios headed by Mass Effect veteran Mac Walters and Halo Infinite multiplayer director Jerry Hook. Each closure meant ambitious MMO and multiplayer projects cancelled before players could experience them.
Paladin Studios, Studio Thunderhorse, and numerous smaller independent developers permanently closed after failing to secure funding or publishers in an increasingly risk-averse market. The message became clear – unless you’re developing a proven franchise or live service game with massive commercial potential, good luck finding financial backing.
What Went Wrong
The 2024 crisis stems from unrealistic growth expectations established during the pandemic. From 2020-2021, gaming revenue exploded as locked-down consumers spent unprecedented amounts on entertainment. Publishers hired aggressively, greenlit ambitious projects, and planned for continued exponential growth.
That growth never materialized. As the world reopened, gaming spending stabilized rather than continuing upward. Players had finite budgets stretched across an increasing number of expensive $70 AAA releases and endlessly monetized live service games. Development costs ballooned as teams grew and games became more complex, while revenue per unit remained flat or declined.
The live service gold rush proved catastrophic. Publishers convinced themselves every game needed to be the next Fortnite or Destiny, generating recurring revenue through seasons and battle passes. Most attempts failed spectacularly. Sony’s Concord shut down just weeks after launch. Suicide Squad: Kill the Justice League, Skull and Bones, and numerous other live service bets underperformed or bombed completely.
Meanwhile, development timelines stretched longer. Games that should have released in 2023 or 2024 slipped to 2025 or beyond. Studios burned through budgets on projects years away from generating revenue. Publishers responded by cutting staff, cancelling projects, and closing studios to reduce overhead.
Silver Linings and Success Stories
Despite the doom and gloom, 2024 wasn’t universally terrible. Steam had its best year ever for new release sales according to Valve. Over 500 games earned more than $250,000 in their first 30 days, with 200 crossing $1 million – increases of 27% and 15% respectively from 2023.
PC gaming showed resilience with the strongest slate of premium releases in years. Black Myth: Wukong became a global phenomenon, particularly in China. Elden Ring: Shadow of the Erdtree sold 10 million copies despite being DLC. Palworld captured massive audiences. The success of these titles proved that players still eagerly support quality single-player and cooperative experiences.
Indies and AA games found audiences willing to take chances on smaller projects. Balatro became an unexpected deckbuilding phenomenon. Manor Lords sold 2 million copies. Strategy games like Frostpunk 2 and Civilization VII found dedicated fanbases. The middle market that publishers abandoned in the 2010s showed signs of sustainable life.
Frequently Asked Questions
How big is the gaming industry in 2024?
The global games market reached $184.3 billion in revenue for 2024, growing just 0.2% compared to 2023. Mobile gaming accounts for $92.5 billion, console gaming $50.3 billion, and PC gaming $41.5 billion of that total.
How many game developers were laid off in 2024?
At least 15,048 game developers lost their jobs in 2024 according to Game Industry Layoffs tracking. This surpasses the 10,000+ layoffs from 2023. The actual number is likely higher as not all studios publicly announce workforce reductions.
What was the best-selling game of 2024?
EA Sports College Football 25 was the best-selling game in the United States for 2024, surprising industry analysts. The revival of the NCAA football franchise after an 11-year absence became the best-selling sports game in U.S. history.
How many copies did Helldivers 2 sell?
Helldivers 2 sold over 12 million copies in its first 12 weeks, becoming PlayStation’s fastest-selling game ever. By November 2024, estimates placed total sales above 15 million copies across PlayStation 5 and PC.
Which gaming platform grew in 2024?
Mobile was the only platform showing growth in 2024, increasing 2.8% year-over-year to $92.5 billion. Console gaming fell 4% and PC gaming declined 0.2% compared to 2023.
What percentage of game sales are digital?
Digital games accounted for 95.4% of total gaming revenue in 2024. On PC, 99% of sales are digital, while consoles reached 84% digital. Physical game sales represented only $8.5 billion globally.
Which companies had the most layoffs in 2024?
Microsoft led with 2,800 gaming division layoffs, followed by Unity with 1,800, Sony with 1,339, and Tencent subsidiaries with 862. Nearly every major publisher implemented workforce reductions during the year.
Why did the gaming industry have so many layoffs?
Layoffs resulted from overexpansion during the pandemic, stagnant revenue growth, rising development costs, and failed live service game bets. Publishers hired aggressively expecting continued growth that never materialized, forcing painful cost-cutting measures.
Looking Ahead to 2025
The gaming industry enters 2025 leaner, humbler, and hopefully wiser. Publishers have learned painful lessons about overexpansion, unrealistic live service expectations, and development cost management. The survivors will be more cautious, more selective, and more focused on proven concepts rather than moonshot bets.
Grand Theft Auto VI looms as 2025’s guaranteed blockbuster, potentially generating industry-saving revenue when it launches. Nintendo Switch 2’s arrival will drive hardware sales and breathe life into a stagnant console market. Monster Hunter Wilds and Assassin’s Creed Shadows represent major franchises that could deliver if they stick their landings.
But the fundamental challenges remain. Development costs continue rising. Player attention fragments across too many games. The live service market feels saturated. Physical media continues its death spiral. And the specter of more layoffs and closures hangs over an industry that hasn’t solved its structural problems.
The $184.3 billion gaming market remains massive, profitable, and culturally significant. Mobile gaming prints money. PC gaming shows vitality. Great games still find massive audiences. But 2024’s numbers reveal an industry at an inflection point, searching for sustainable growth after years of pandemic-fueled expansion. The developers who lost their jobs deserve better. The studios that closed deserved more time. And the games that never released deserved their chance.
Gaming will survive 2024’s crisis. It always does. But the scars will last, and the lessons learned will shape the industry for years to come. The Year in Numbers tells a sobering story, but within those statistics lie the seeds of recovery. Now the industry must prove it learned from its mistakes before the next crisis arrives.